----

----

|   |                                                                                                                                              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| x      | Quarterly      Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of      1934 for the quarterly period ended June 30, 2009   |
|   |                                                                                                                                              |
| o      | Transition      Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 for the transition period from _____ to  _____ |

|   |                                                        |   |
|--------|-------------------------------------------------------------|--------|
|   | WGNB      CORP.                                             |   |
|   | (Exact      name of registrant as specified in its charter) |   |

|   | Georgia                       |   | 58-1640130                                |   |
|--------|-------------------------------|--------|-------------------------------------------|--------|
|   | (State      of Incorporation) |   | (I.R.S.      Employer Identification No.) |   |

|   | 201      Maple Street                         |   |
|--------|-----------------------------------------------|--------|
|   | P.O.      Box 280                             |   |
|   | Carrollton,      Georgia 30112                |   |
|   | (Address      of principal executive offices) |   |

|   | (770)      832-3557                                             |   |
|--------|-----------------------------------------------------------------|--------|
|   | (Registrant’s      telephone number, including area code) |   |

|                           |                     |                         |                             |
|--------------------------------|--------------------------|------------------------------|----------------------------------|
| Large Accelerated      filer o | Accelerated filer      o | Non-accelerated      filer o | Smaller reporting      company x |

|   |                            |   |      |   |                                |   |
|--------|---------------------------------|--------|-----------|--------|-------------------------------------|--------|
|   |                            | Class  |      |   | Outstanding      at August 14, 2009 |   |
|   |                            |   |      |   |
|   | Common      Stock, no par value |   | 6,058,007 |   |

----

|                              |   |                                                                                                                 |        |   |   |   |
|-----------------------------------|--------|----------------------------------------------------------------------------------------------------------------------|-------------|--------|--------|--------|
| Item      Numberin      Form 10-Q |   |                                                                                                                 | Description |   |   | Page   |
|                              |   |                                                                                                                 |        |   |
|  Part      I                 |   | Financial      Information                                                                                           |        |   |
|                              |   |                                                                                                                 |        |   |
| Item      1.                      |   | Financial      Statements                                                                                            |        | 2      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Consolidated      Balance Sheets as of June 30, 2009 and December 31, 2008                                           |        | 3      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Consolidated      Statements of Operations for the Three Months Ended June 30, 2009 and June      30, 2008           |        | 4      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Consolidated      Statements of Comprehensive Income for the Three Months Ended June 30,      2009 and June 30, 2008 |        | 5      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Consolidated      Statements of Operations for the Six Months Ended June 30, 2009 and June      30, 2008             |        | 6      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Consolidated      Statements of Comprehensive Income for the Six Months Ended June 30, 2009      and June 30, 2008   |        | 7      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Consolidated      Statements of Cash Flows for the Six Months Ended June 30, 2009 and June      30, 2008             |        | 8      |
|                              |   |                                                                                                                 |        |   |
|                              |   | Notes      to Consolidated Financial Statements                                                                      |        | 10     |
|                              |   |                                                                                                                 |        |   |
| Item      2.                      |   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                |        | 23     |
|                              |   |                                                                                                                 |        |   |
| Item      3.                      |   | Quantitative      and Qualitative Disclosures About Market Risk                                                      |        | 36     |
|                              |   |                                                                                                                 |        |   |
| Item      4T.                     |   | Controls      and Procedures                                                                                         |        | 37     |
|                              |   |                                                                                                                 |        |   |
|  Part      II                |   | Other      Information                                                                                               |        |   |
|                              |   |                                                                                                                 |        |   |
| Item      1.                      |   | Legal      Proceedings                                                                                               |        | 37     |
|                              |   |                                                                                                                 |        |   |
| Item      2.                      |   | Unregistered      Sales of Equity Securities and Use of Proceeds                                                     |        | 37     |
|                              |   |                                                                                                                 |        |   |
| Item      3.                      |   | Defaults      Upon Senior Securities                                                                                 |        | 37     |
|                              |   |                                                                                                                 |        |   |
| Item      4.                      |   | Submission      of Matters to a Vote of Security Holders                                                             |        | 38     |
|                              |   |                                                                                                                 |        |   |
| Item      5.                      |   | Other      Information                                                                                               |        | 38     |
|                              |   |                                                                                                                 |        |   |
| Item      6.                      |   | Exhibits                                                                                                             |        | 38     |
|                              |   |                                                                                                                 |        |   |
|                              |   | Signatures                                                                                                           |        | 40     |

----

|         |                      |
|--------------|---------------------------|
| Item      1. | Financial      Statements |

----

|                                                                                                                                                                                        |   |              |        |   |                  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-----------------------|--------|
|                                                                                                                                                                                        |   | June      30,2009 |        |   | December      31,2008 |   |
|                                                                                                                                                                                        |   | (unaudited)       |        |   | (audited)             |   |
| Assets                                                                                                                                                                                      |   |              |        |   |                  |   |
| Cash      and due from banks                                                                                                                                                                |   | $                 | 24,030,715  |   |                  |   | 16,936,965 |   |
| Interest      – bearing funds in other banks                                                                                                                                          |   |              | 13,352,043  |   |                  |   | 12,574,624 |   |
| Federal      funds sold                                                                                                                                                                     |   |              | 47,943,722  |   |                  |   | 45,839,396 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Cash      and cash equivalents                                                                                                                                                              |   |              | 85,326,480  |   |                  |   | 75,350,985 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Securities      available-for-sale                                                                                                                                                          |   |              | 93,944,372  |   |                  |   | 94,369,622 |   |
| Securities      held-to-maturity, estimated fair value for June 30, 2009 of $1,229,880 and      December 31, 2008 of $2,853,170                                                             |   |              | 1,229,880   |   |                  |   | 7,622,340 |   |
| Loans,      net                                                                                                                                                                             |   |              | 583,374,103 |   |                  |   | 618,922,150 |   |
| Premises      and equipment, net                                                                                                                                                            |   |              | 16,386,618  |   |                  |   | 17,016,363 |   |
| Accrued      interest receivable                                                                                                                                                            |   |              | 2,942,251   |   |                  |   | 3,573,092 |   |
| Cash      surrender value of life insurance                                                                                                                                                 |   |              | 3,874,229   |   |                  |   | 3,803,010 |   |
| Intangibles      assets, net                                                                                                                                                                |   |              | 4,590,400   |   |                  |   | 4,877,300 |   |
| Foreclosed      property                                                                                                                                                                    |   |              | 41,986,672  |   |                  |   | 45,797,654 |   |
| Deferred      tax asset                                                                                                                                                                     |   |              | 1,090,019   |   |                  |   | 7,574,933 |   |
| Income      tax receivable                                                                                                                                                                  |   |              | 5,880,560   |   |                  |   | 3,076,252 |   |
| Other      assets                                                                                                                                                                           |   |              | 7,994,348   |   |                  |   | 10,235,749 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
|                                                                                                                                                                                        |   | $                 | 848,619,932 |   |                  |   | 892,219,450 |   |
| Liabilities      and Stockholders’ Equity                                                                                                                                             |   |              |        |   |                  |   |   |   |
| Deposits:                                                                                                                                                                                   |   |              |        |   |                  |   |   |   |
| Demand                                                                                                                                                                                      |   | $                 | 66,638,872  |   |                  |   | 66,296,298 |   |
| Interest      bearing demand                                                                                                                                                                |   |              | 183,776,626 |   |                  |   | 194,241,342 |   |
| Savings                                                                                                                                                                                     |   |              | 20,717,183  |   |                  |   | 18,653,924 |   |
| Time                                                                                                                                                                                        |   |              | 245,330,324 |   |                  |   | 222,457,656 |   |
| Time,      over $100,000                                                                                                                                                                    |   |              | 248,687,406 |   |                  |   | 260,043,855 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Total      deposits                                                                                                                                                                         |   |              | 765,150,411 |   |                  |   | 761,693,075 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Federal      Home Loan Bank advances                                                                                                                                                        |   |              | 52,000,000  |   |                  |   | 52,000,000 |   |
| Junior      subordinated debentures                                                                                                                                                         |   |              | 10,825,000  |   |                  |   | 10,825,000 |   |
| Accrued      interest payable                                                                                                                                                               |   |              | 2,433,534   |   |                  |   | 2,847,758 |   |
| Other      liabilities                                                                                                                                                                      |   |              | 6,421,726   |   |                  |   | 7,924,350 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Total      liabilities                                                                                                                                                                      |   |              | 836,830,671 |   |                  |   | 835,290,183 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Commitments                                                                                                                                                                                 |   |              |        |   |                  |   |   |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Stockholders’      equity:                                                                                                                                                            |   |              |        |   |                  |   |   |   |
| Series      A convertible perpetual preferred stock, 9% non-cumulative, no par value,      $8 liquidation value, 20,000,000 shares authorized; 1,509,100 shares      issued and outstanding |   |              | 11,943,515  |   |                  |   | 11,943,515 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Common      stock, no par value, 50,000,000 shares authorized; 6,058,007 shares issued      and outstanding                                                                                 |   |              | 37,992,971  |   |                  |   | 37,917,152 |   |
| Retained      earnings (accumulated deficit)                                                                                                                                                |   |              | (35,007,328 | )      |                  |   | 8,874,438 |   |
| Accumulated      other comprehensive loss                                                                                                                                                   |   |              | (3,139,897  | )      |                  |   | (1,805,838 | ) |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
| Total      stockholders’ equity                                                                                                                                                       |   |              | 11,789,261  |   |                  |   | 56,929,267 |   |
|                                                                                                                                                                                        |   |              |        |   |                  |   |   |   |
|                                                                                                                                                                                        |   | $                 | 848,619,932 |   |                  |   | 892,219,450 |   |

----

|                                                                                |   |                            |        |   |               |   |
|-------------------------------------------------------------------------------------|--------|---------------------------------|-------------|--------|--------------------|--------|
|                                                                                |   | For      the Three Months Ended |        |
|                                                                                |   | June      30, 2009              |        |   | June      30, 2008 |   |
| Interest      income:                                                               |   |                            |        |   |               |   |
| Interest      and fees on loans                                                     |   | $                               | 8,228,768   |   |               |   | 9,819,841 |   |
| Interest      on federal funds sold and interest-bearing funds in other      banks  |   |                            | 42,334      |   |               |   | 71,525 |   |
| Interest      on investment securities:                                             |   |                            |        |   |               |   |   |   |
| U.S.      Government sponsored enterprises                                          |   |                            | 433,854     |   |               |   | 617,750 |   |
| State,      county and municipal                                                    |   |                            | 616,511     |   |               |   | 776,016 |   |
| Other                                                                               |   |                            | 53,782      |   |               |   | 347,426 |   |
| Total      interest income                                                          |   |                            | 9,375,249   |   |               |   | 11,632,558 |   |
| Interest      expense:                                                              |   |                            |        |   |               |   |   |   |
| Interest      on deposits:                                                          |   |                            |        |   |               |   |   |   |
| Demand                                                                              |   |                            | 180,503     |   |               |   | 899,083 |   |
| Savings                                                                             |   |                            | 16,598      |   |               |   | 16,335 |   |
| Time                                                                                |   |                            | 4,763,557   |   |               |   | 4,568,673 |   |
| Interest      on FHLB and other borrowings                                          |   |                            | 605,290     |   |               |   | 796,376 |   |
| Total      interest expense                                                         |   |                            | 5,565,948   |   |               |   | 6,280,467 |   |
|                                                                                |   |                            |        |   |               |   |   |   |
| Net      interest income                                                            |   |                            | 3,809,301   |   |               |   | 5,352,091 |   |
| Provision      for loan losses                                                      |   |                            | 22,096,728  |   |               |   | 8,100,000 |   |
| Net      interest income (expense) after provision for loan losses                  |   |                            | (18,287,427 | )      |               |   | (2,747,909 | ) |
| Other      income:                                                                  |   |                            |        |   |               |   |   |   |
| Service      charges on deposit accounts                                            |   |                            | 1,315,781   |   |               |   | 1,534,394 |   |
| Mortgage      origination fees                                                      |   |                            | 68,134      |   |               |   | 53,865 |   |
| Brokerage      fees                                                                 |   |                            | 110,091     |   |               |   | 123,346 |   |
| ATM      network fees                                                               |   |                            | 386,724     |   |               |   | 357,770 |   |
| Gain      (loss) on sales of securities available-for-sale                          |   |                            | (7,253      | )      |               |   | 58,746 |   |
| Total      other-than-temporary impairment loss on held-to-maturity      securities |   |                            | (6,403,177  | )      |               |   | — |   |
| Portion      of loss recognized in other comprehensive loss                         |   |                            | 2,590,623   |   |               |   | — |   |
| Net      impairment loss on held-to-maturity securities (credit    loss)            |   |                            | (3,812,554  | )      |               |   | — |   |
| (Loss)      gain on sale and write-down of foreclosed properties, net               |   |                            | (5,282,984  | )      |               |   | 108,977 |   |
| Loss      on settlement of swap                                                     |   |                            | (691,000    | )      |               |   | — |   |
| Miscellaneous                                                                       |   |                            | 235,796     |   |               |   | 272,691 |   |
| Total      other (loss) income                                                      |   |                            | (7,677,265  | )      |               |   | 2,509,789 |   |
| Other      expenses:                                                                |   |                            |        |   |               |   |   |   |
| Salaries      and employee benefits                                                 |   |                            | 3,101,747   |   |               |   | 3,578,258 |   |
| Occupancy                                                                           |   |                            | 886,768     |   |               |   | 1,025,214 |   |
| Provision      for off-balance sheet credit exposures                               |   |                            | 802,990     |   |               |   | — |   |
| Expense      on loans and foreclosed property                                       |   |                            | 862,811     |   |               |   | 554,549 |   |
| Federal      deposit insurance expense                                              |   |                            | 1,141,606   |   |               |   | 112,543 |   |
| Other      operating                                                                |   |                            | 1,583,070   |   |               |   | 1,651,396 |   |
| Total      other expenses                                                           |   |                            | 8,378,992   |   |               |   | 6,921,960 |   |
|                                                                                |   |                            |        |   |               |   |   |   |
| Loss      before income taxes                                                       |   |                            | (34,343,684 | )      |               |   | (7,160,080 | ) |
|                                                                                |   |                            |        |   |               |   |   |   |
| Income      tax (expense) benefit                                                   |   |                            | (6,258,351  | )      |               |   | 2,865,947 |   |
|                                                                                |   |                            |        |   |               |   |   |   |
| Net      loss                                                                       |   | $                               | (40,602,035 | )      |               |   | (4,294,133 | ) |
|                                                                                |   |                            |        |   |               |   |   |   |
| Basic      loss per share                                                           |   | $                               | (6.70       | )      |               |   | (0.71 | ) |
| Diluted      loss per share                                                         |   | $                               | (6.70       | )      |               |   | (0.71 | ) |
| Dividends      declared per share                                                   |   | $                               | —     |   |               |   | 0.1050 |   |

----

|                                                                                           |   |                            |        |   |               |   |
|------------------------------------------------------------------------------------------------|--------|---------------------------------|-------------|--------|--------------------|--------|
|                                                                                           |   | For      the Three Months Ended |        |
|                                                                                           |   | June      30, 2009              |        |   | June      30, 2008 |   |
|                                                                                           |   |                            |        |   |               |   |
| Net      loss                                                                                  |   | $                               | (40,602,035 | )      |               |   | (4,294,133 | ) |
| Other      comprehensive loss, net of tax:                                                     |   |                            |        |   |               |   |   |   |
| Unrealized      losses on investment securities available-for-sale:                            |   |                            |        |   |               |   |   |   |
| Unrealized      losses arising during the period                                               |   |                            | (742,514    | )      |               |   | (2,121,602 | ) |
| Associated      income tax benefit                                                             |   |                            | 252,455     |   |               |   | 721,345 |   |
| Reclassification      adjustment for loss (gain) realized                                      |   |                            | 7,253       |   |               |   | (58,746 | ) |
| Associated      (tax benefit) taxes                                                            |   |                            | (2,466      | )      |               |   | 19,974 |   |
| Unrealized      losses on investment securities held-to-maturity:                              |   |                            |        |   |               |   |   |   |
| Unrealized      losses arising during the period                                               |   |                            | (2,590,623  | )      |               |   | — |   |
| Associated      income tax benefit                                                             |   |                            | 880,812     |   |               |   | — |   |
| Change      in fair value of derivatives for cash flow hedges:                                 |   |                            |        |   |               |   |   |   |
| Increase      in fair value of derivatives for cash flow hedges arising during the      period |   |                            | 138,909     |   |               |   | 421,235 |   |
| Associated      taxes                                                                          |   |                            | (47,229     | )      |               |   | (143,220 | ) |
| Reclassification      adjustment for loss realized                                             |   |                            | 691,000     |   |               |   | — |   |
| Associated      tax benefit                                                                    |   |                            | (234,940    | )      |               |   | — |   |
|                                                                                           |   |                            |        |   |               |   |   |   |
| Other      comprehensive loss                                                                  |   |                            | (1,647,343  | )      |               |   | (1,161,014 | ) |
|                                                                                           |   |                            |        |   |               |   |   |   |
| Comprehensive      loss                                                                        |   | $                               | (42,249,378 | )      |               |   | (5,455,147 | ) |

----

|                                                                                |   |                          |        |   |               |   |
|-------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|--------------------|--------|
|                                                                                |   | For      the Six Months Ended |        |
|                                                                                |   | June      30, 2009            |        |   | June      30, 2008 |   |
| Interest      income:                                                               |   |                          |        |   |               |   |
| Interest      and fees on loans                                                     |   | $                             | 17,163,405  |   |               |   | 22,121,955 |   |
| Interest      on federal funds sold and interest-bearing funds in other      banks  |   |                          | 77,610      |   |               |   | 124,691 |   |
| Interest      on investment securities:                                             |   |                          |        |   |               |   |   |   |
| U.S.      Government sponsored enterprises                                          |   |                          | 890,268     |   |               |   | 1,282,521 |   |
| State,      county and municipal                                                    |   |                          | 1,219,574   |   |               |   | 1,533,076 |   |
| Other                                                                               |   |                          | 184,001     |   |               |   | 701,422 |   |
| Total      interest income                                                          |   |                          | 19,534,858  |   |               |   | 25,763,665 |   |
| Interest      expense:                                                              |   |                          |        |   |               |   |   |   |
| Interest      on deposits:                                                          |   |                          |        |   |               |   |   |   |
| Demand                                                                              |   |                          | 386,652     |   |               |   | 2,151,660 |   |
| Savings                                                                             |   |                          | 31,817      |   |               |   | 63,546 |   |
| Time                                                                                |   |                          | 9,734,853   |   |               |   | 9,307,794 |   |
| Interest      on FHLB and other borrowings                                          |   |                          | 1,210,559   |   |               |   | 1,576,573 |   |
| Total      interest expense                                                         |   |                          | 11,363,881  |   |               |   | 13,099,573 |   |
|                                                                                |   |                          |        |   |               |   |   |   |
| Net      interest income                                                            |   |                          | 8,170,977   |   |               |   | 12,664,092 |   |
| Provision      for loan losses                                                      |   |                          | 26,046,728  |   |               |   | 8,850,000 |   |
| Net      interest income (expense) after provision for loan losses                  |   |                          | (17,875,751 | )      |               |   | 3,814,092 |   |
| Other      income:                                                                  |   |                          |        |   |               |   |   |   |
| Service      charges on deposit accounts                                            |   |                          | 2,603,843   |   |               |   | 3,073,657 |   |
| Mortgage      origination fees                                                      |   |                          | 136,795     |   |               |   | 170,912 |   |
| Brokerage      fees                                                                 |   |                          | 243,076     |   |               |   | 234,551 |   |
| ATM      network fees                                                               |   |                          | 780,850     |   |               |   | 742,936 |   |
| Gain      on sales of securities available-for-sale                                 |   |                          | 481,629     |   |               |   | 105,669 |   |
| Total      other-than-temporary impairment loss on held-to-maturity      securities |   |                          | (6,403,177  | )      |               |   | — |   |
| Portion      of loss recognized in other comprehensive loss                         |   |                          | 2,590,623   |   |               |   | — |   |
| Net      impairment loss on held-to-maturity securities (credit    loss)            |   |                          | (3,812,554  | )      |               |   | — |   |
| Loss      on write-down of other investment                                         |   |                          | (79,114     | )      |               |   | — |   |
| (Loss)      gain on sale and write-down of foreclosed property, net                 |   |                          | (6,800,096  | )      |               |   | 121,258 |   |
| Loss      on settlement of swap                                                     |   |                          | (691,000    | )      |               |   | — |   |
| Miscellaneous                                                                       |   |                          | 316,882     |   |               |   | 495,487 |   |
| Total      other (loss) income                                                      |   |                          | (6,819,689  | )      |               |   | 4,944,470 |   |
| Other      expenses:                                                                |   |                          |        |   |               |   |   |   |
| Salaries      and employee benefits                                                 |   |                          | 6,280,736   |   |               |   | 7,204,623 |   |
| Occupancy                                                                           |   |                          | 1,817,355   |   |               |   | 2,048,058 |   |
| Provision      for off-balance sheet credit exposures                               |   |                          | 802,990     |   |               |   | — |   |
| Expense      on loans and foreclosed property                                       |   |                          | 1,406,213   |   |               |   | 847,617 |   |
| Federal      deposit insurance expense                                              |   |                          | 1,291,633   |   |               |   | 132,531 |   |
| Other      operating                                                                |   |                          | 3,113,622   |   |               |   | 3,270,038 |   |
| Total      other expenses                                                           |   |                          | 14,712,549  |   |               |   | 13,502,867 |   |
|                                                                                |   |                          |        |   |               |   |   |   |
| Loss      before income taxes                                                       |   |                          | (39,407,989 | )      |               |   | (4,744,305 | ) |
| Income      tax (expense) benefit                                                   |   |                          | (4,205,158  | )      |               |   | 2,281,144 |   |
|                                                                                |   |                          |        |   |               |   |   |   |
| Net      loss                                                                       |   | $                             | (43,613,147 | )      |               |   | (2,463,161 | ) |
|                                                                                |   |                          |        |   |               |   |   |   |
| Basic      loss per share                                                           |   | $                             | (7.24       | )      |               |   | (0.41 | ) |
| Diluted      loss earnings per share                                                |   | $                             | (7.24       | )      |               |   | (0.41 | ) |
| Dividends      declared per share                                                   |   | $                             | —     |   |               |   | 0.3150 |   |

----

|                                                                                                      |   |                          |        |   |               |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|--------------------|--------|
|                                                                                                      |   | For      the Six Months Ended |        |
|                                                                                                      |   | June      30, 2009            |        |   | June      30, 2008 |   |
|                                                                                                      |   |                          |        |   |               |   |
| Net      loss                                                                                             |   | $                             | (43,613,147 | )      |               |   | (2,463,161 | ) |
| Other      comprehensive loss, net of tax:                                                                |   |                          |        |   |               |   |   |   |
| Unrealized      losses on investment securities available-for-sale:                                       |   |                          |        |   |               |   |   |   |
| Unrealized      gains (losses) arising during the period                                                  |   |                          | 207,080     |   |               |   | (1,671,996 | ) |
| Associated      income (taxes) tax benefit                                                                |   |                          | (70,407     | )      |               |   | 568,479 |   |
| Reclassification      adjustment for gain realized                                                        |   |                          | (481,629    | )      |               |   | (105,669 | ) |
| Associated      taxes                                                                                     |   |                          | 163,754     |   |               |   | 35,927 |   |
| Unrealized      losses on investment securities held-to-maturity:                                         |   |                          |        |   |               |   | —  |   |
| Unrealized      losses arising during the period                                                          |   |                          | (2,590,623  | )      |               |   | — |   |
| Associated      income tax benefit                                                                        |   |                          | 880,812     |   |               |   | — |   |
| Change      in fair value of derivatives for cash flow hedges:                                            |   |                          |        |   |               |   |   |   |
| Increase      (decrease) in fair value of derivatives for cash flow hedges arising      during the period |   |                          | 152,870     |   |               |   | (47,577 | ) |
| Associated      (taxes) tax benefit                                                                       |   |                          | (51,976     | )      |               |   | 16,176 |   |
| Reclassification      adjustment for loss realized                                                        |   |                          | 691,000     |   |               |   | — |   |
| Associated      tax benefit                                                                               |   |                          | (234,940    | )      |               |   | — |   |
|                                                                                                      |   |                          |        |   |               |   |   |   |
| Other      comprehensive loss                                                                             |   |                          | (1,334,059  | )      |               |   | (1,204,660 | ) |
|                                                                                                      |   |                          |        |   |               |   |   |   |
| Comprehensive      loss                                                                                   |   | $                             | (44,947,206 | )      |               |   | (3,667,821 | ) |

----

|                                                                                                  |   |                          |        |   |               |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|--------|--------------------|--------|
|                                                                                                  |   | For      the Six Months Ended |        |
|                                                                                                  |   | June      30, 2009            |        |   | June      30, 2008 |   |
|                                                                                                  |   |                          |        |   |               |   |
| Cash      flows from operating activities:                                                            |   |                          |        |   |               |   |
| Net      loss                                                                                         |   | $                             | (43,613,147 | )      |               |   | (2,463,161 | ) |
| Adjustments      to reconcile net loss to net cash (used) provided by operating      activities: |   |                          |        |   |               |   |   |   |
| Depreciation,      amortization and accretion                                                         |   |                          | 933,470     |   |               |   | 920,612 |   |
| Provision      for loan losses                                                                        |   |                          | 26,046,728  |   |               |   | 8,850,000 |   |
| Provision      for off-balance sheet credit exposures                                                 |   |                          | 802,990     |   |               |   | — |   |
| Loss      (gain) on sale or disposal of premises and equipment                                        |   |                          | 5,154       |   |               |   | (2,089 | ) |
| Income      from bank owned life insurance                                                            |   |                          | (71,219     | )      |               |   | (82,198 | ) |
| Gain      on sale of securities available-for-sale                                                    |   |                          | (481,629    | )      |               |   | (105,669 | ) |
| Net      impairment loss on held-to-maturity securities (credit    loss)                              |   |                          | 3,812,554   |   |               |   | — |   |
| Loss      on write-down of other investment                                                           |   |                          | 79,114      |   |               |   | — |   |
| Loss      (gain) on sale or write-down of foreclosed property, net                                    |   |                          | 6,800,096   |   |               |   | (121,258 | ) |
| Deferred      income tax expense (benefit)                                                            |   |                          | 7,739,991   |   |               |   | (3,242,875 | ) |
| Stock-based      employee compensation expense                                                        |   |                          | 78,300      |   |               |   | 98,000 |   |
| Change      in:                                                                                       |   |                          |        |   |               |   |   |   |
| Other      assets                                                                                     |   |                          | 264,855     |   |               |   | (299,942 | ) |
| Other      liabilities                                                                                |   |                          | (2,719,838  | )      |               |   | (1,494,691 | ) |
| Net      cash (used) provided by operating activities                                                 |   |                          | (322,581    | )      |               |   | 2,056,729 |   |
|                                                                                                  |   |                          |        |   |               |   |   |   |
| Cash      flows from investing activities:                                                            |   |                          |        |   |               |   |   |   |
| Proceeds      from the sale of securities available-for-sale                                          |   |                          | 27,683,449  |   |               |   | 7,328,485 |   |
| Proceeds      from maturities of securities available-for-sale                                        |   |                          | 6,347,871   |   |               |   | 6,934,784 |   |
| Proceeds      from maturities of securities held-to-maturity                                          |   |                          | —     |   |               |   | 427,211 |   |
| Purchases      of securities available-for-sale                                                       |   |                          | (33,447,285 | )      |               |   | (13,121,930 | ) |
| Net      change in loans                                                                              |   |                          | 3,726,398   |   |               |   | (17,959,559 | ) |
| Purchases      of premises and equipment                                                              |   |                          | (118,211    | )      |               |   | (452,837 | ) |
| Proceeds      from the sale of premises and equipment                                                 |   |                          | —     |   |               |   | 3,778 |   |
| Proceeds      from sales of foreclosed property                                                       |   |                          | 2,976,698   |   |               |   | 2,226,215 |   |
| Capital      expenditures for foreclosed property                                                     |   |                          | (57,080     | )      |               |   | (421,631 | ) |
| Net      cash provided (used) by investing activities                                                 |   |                          | 7,111,840   |   |               |   | (15,035,484 | ) |
|                                                                                                  |   |                          |        |   |               |   |   |   |
| Cash      flows from financing activities:                                                            |   |                          |        |   |               |   |   |   |
| Net      change in deposits                                                                           |   |                          | 3,457,336   |   |               |   | 35,360,207 |   |
| Repayment      of FHLB advances                                                                       |   |                          | —     |   |               |   | (2,500,000 | ) |
| Dividends      paid on preferred stock                                                                |   |                          | (268,619    | )      |               |   | — |   |
| Dividends      paid on common stock                                                                   |   |                          | —     |   |               |   | (1,910,025 | ) |
| Offering      costs                                                                                   |   |                          | (2,481      | )      |               |   | (1,250 | ) |
|                                                                                                  |   |                          |        |   |               |   |   |   |
| Net      cash provided by financing activities                                                        |   |                          | 3,186,236   |   |               |   | 30,948,932 |   |
|                                                                                                  |   |                          |        |   |               |   |   |   |
| Change      in cash and cash equivalents                                                              |   |                          | 9,975,495   |   |               |   | 17,970,177 |   |
|                                                                                                  |   |                          |        |   |               |   |   |   |
| Cash      and cash equivalents at beginning of period                                                 |   |                          | 75,350,985  |   |               |   | 25,845,340 |   |
|                                                                                                  |   |                          |        |   |               |   |   |   |
| Cash      and cash equivalents at end of period                                                       |   | $                             | 85,326,480  |   |               |   | 43,815,517 |   |

----

|                                                                                     |   |                          |       |   |               |   |
|------------------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|--------------------|--------|
|                                                                                     |   | For      the Six Months Ended |       |
|                                                                                     |   | June      30, 2009            |       |   | June      30, 2008 |   |
|                                                                                     |   |                          |       |   |               |   |
| Supplemental      disclosure of cash flow information:                                   |   |                          |       |   |               |   |
| Cash      paid during the period for:                                                    |   |                          |       |   |               |   |
| Interest                                                                                 |   | $                             | 11,778,105 |   |               |   | 14,140,568 |   |
|                                                                                     |   |                          |       |   |               |   |   |   |
| Non-cash      investing and financing activities:                                        |   |                          |       |   |               |   |   |   |
| Transfer      of loans to foreclosed property                                            |   |                          | 9,274,201  |   |               |   | 30,307,064 |   |
| Loans      to facilitate the sale of foreclosed property                                 |   |                          | 3,365,469  |   |               |   | 9,486,328 |   |
| Change      in unrealized gains/losses on securities available-for-sale, net of      tax |   |                          | 181,202    |   |               |   | (1,173,259 | ) |
| Change      in unrealized gains/losses on securities held-to-maturity, net of      tax   |   |                          | 1,709,811  |   |               |   | — |   |
| Change      in fair value of derivatives for cash flow hedges, net of    tax             |   |                          | 556,954    |   |               |   | (31,401 | ) |
| Change      in dividends payable                                                         |   |                          | (84        | )      |               |   | (1,883 | ) |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | Basis      of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | The      consolidated financial statements include the accounts of WGNB Corp. (the      “Company”) and its wholly-owned subsidiary, First National Bank of Georgia      (the “Bank”). All significant inter-company accounts have been eliminated      in consolidation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | The      accompanying unaudited interim consolidated financial statements reflect      all adjustments which, in the opinion of management, are necessary to      present fairly the Company’s financial position as of June 30, 2009, and      the results of its operations and its cash flows for the three and six      month periods ended June 30, 2009 and 2008. The financial statements      included herein should be read in conjunction with the consolidated      financial statements, related notes thereto and the report of independent      registered public accounting firm included in the Company’s Annual Report      on Form 10-K for the year ended December 31, 2008, which included the      results of operations for the years ended December 31, 2008, 2007 and      2006.                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Certain      reclassifications have been made in the prior year’s consolidated      statements to conform to the presentation used in 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (2)    | Summary      of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | The      Company’s significant accounting policies are outlined in the annual      financial statements for the year ended December 31, 2008. The following      is an additional new significant policy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Events      or Transactions Subsequent to the Balance Sheet      Date                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | In      May 2009, the Financial Accounting Standards Board (“FASB”) issued      Statement of Financial Accounting Standards No. 165, “Subsequent      Events.” This new standard applies to interim and annual financial      periods ending after June 15, 2009. The statement establishes principles      setting forth the period after the balance sheet date during which      management shall evaluate events and transactions that may occur for      potential recognition or disclosure in the financial statements. For the      purposes of this accounting standard, the Company has evaluated subsequent      events through August 14, 2009, the date the financial statements were      issued.                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (3)    | Loss      per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Basic      earnings per share is based on the weighted average number of common      shares outstanding during the period while the effects of potential common      shares outstanding during the period are included in diluted earnings per      share. The average market price during the year is used to compute      equivalent shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | SFAS      No. 128, “Earnings      Per Share,” requires that employee equity share options, non-vested      shares and similar equity instruments granted to employees be treated as      potential common shares in computing diluted earnings per share. Diluted      earnings per share should be based on the actual number of options or      shares granted and not yet forfeited, unless doing so would be      anti-dilutive. The Company uses the “treasury stock” method for equity      instruments granted in share-based payment transactions provided in SFAS      No. 128 to determine diluted earnings per share.                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | No      presentation for the periods ended June 30, 2009 and June 30, 2008 is set      forth because inclusion of potential common shares in the diluted loss per      share calculation for these periods would be anti-dilutive. Basic loss per      share for the three months ended June 30, 2009 is computed as follows:      ($40,602,035) divided by 6,058,007 shares. Basic loss per share for the      six months ended June 30, 2009 is computed as follows: ($43,613,147) less      dividends on preferred stock of $268,619 divided by 6,058,007 shares.      Basic loss per share for the three months ended June 30, 2008 is computed      as follows: ($4,294,133) divided by 6,057,594 shares. Basic loss per share      for the six months ended June 30, 2008 is ($2,463,161) divided by      6,057,594. The Company had 238,004 and 238,916 of anti-dilutive      options outstanding as of June 30, 2009 and 2008,      respectively. |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)    | Stock      Compensation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | The      Company accounts for its stock-based employee benefit plans in accordance      with SFAS No. 123 (revised 2004) (“SFAS No. 123 (R)”), Share-Based      Payment. SFAS No. 123 (R) addresses the accounting for share-based      payment transactions in which the Company receives employee services in      exchange for equity instruments of the Company. SFAS No. 123 (R) requires      the Company to recognize as compensation expense the “grant date fair      value” of stock options granted to employees in the statement of      operations using the fair-value-based method.                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | The      Company recognized $39,150 and $47,500 of stock-based employee      compensation expense during the three months ended June 30, 2009 and 2008,      respectively, and $78,300 and $98,000 of stock-based employee compensation      during the six months ended June 30, 2009 and 2008, respectively,      associated with its stock option grants. The Company is recognizing the      compensation expense for stock option grants with graded vesting schedules      on a straight-line basis over the requisite service period of the award as      permitted by SFAS No. 123 (R). As of June 30, 2009, there was $390,238 of      unrecognized compensation cost related to stock option grants. The cost is      expected to be recognized over the remaining vesting period of five      years. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | The      Company did not grant any options during 2009. The grant date fair value      of each option granted during 2008 was $3.37. The fair value of each      option is estimated on the date of grant using the Black-Scholes Model.      The following weighted average assumptions were used for grants in      2008:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|                         |   | 2008           |   |
|------------------------------|--------|----------------|--------|
| Dividend      yield          |   |           | 3.09   | % |
| Expected      volatility     |   |           | 22     | % |
| Risk-free      interest rate |   |           | 3.50   | % |
| Expected      term           |   | 6.5      years |   |

| (5)    | Securities                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                          |
|   | Securities      available-for-sale and held-to-maturity at June 30, 2009 and December 31,      2008 are summarized asfollows: |

| Available-for-Sale                |   |                   | June      30, 2009 |                 |
|-----------------------------------|--------|------------------------|--------------------|----------------------|
|                              |   | AmortizedCost          |               | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFairValue |   |
| Mortgage-backed      securities   |   | $                      | 41,904,672         |                 |   | 555,911 |   |   | 350,205 |   |   | 42,110,378 |   |
| State,      county and municipals |   |                   | 50,103,383         |                 |   | 207,602 |   |   | 1,792,902 |   |   | 48,518,083 |   |
| Corporate      bonds              |   |                   | 4,103,114          |                 |   | — |   |   | 787,203 |   |   | 3,315,911 |   |
|                              |   |                   |               |                 |   |   |   |   |   |   |   |   |   |
|                              |   | $                      | 96,111,169         |                 |   | 763,513 |   |   | 2,930,310 |   |   | 93,944,372 |   |
|                              |   |                   |               |                 |   |   |   |   |   |   |   |   |   |
|                              |   | December      31, 2008 |               |
|                              |   | AmortizedCost          |               | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFairValue |   |
| Mortgage-backed      securities   |   | $                      | 32,587,849         |                 |   | 617,678 |   |   | 30,265 |   |   | 33,175,262 |   |
| State,      county and municipals |   |                   | 59,330,698         |                 |   | 352,558 |   |   | 2,404,613 |   |   | 57,278,643 |   |
| Corporate      bonds              |   |                   | 4,343,324          |                 |   | — |   |   | 427,607 |   |   | 3,915,717 |   |
|                              |   |                   |               |                 |   |   |   |   |   |   |   |   |   |
|                              |   | $                      | 96,261,871         |                 |   | 970,236 |   |   | 2,862,485 |   |   | 94,369,622 |   |

----

|   |                       |
|--------|----------------------------|
| (5)    | Securities,      continued |

| Held-to-Maturity                |   |                   | June      30, 2009 |                 |
|---------------------------------|--------|------------------------|--------------------|----------------------|
|                            |   | AmortizedCost          |               | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFairValue |   |
| Trust      preferred securities |   | $                      | 3,820,503          |                 |   | — |   |   | 2,590,623 |   |   | 1,229,880 |   |
|                            |   |                   |               |                 |   |   |   |   |   |   |   |   |   |
|                            |   | December      31, 2008 |               |
|                            |   | AmortizedCost          |               | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | EstimatedFairValue |   |
| Trust      preferred securities |   | $                      | 7,622,340          |                 |   | — |   |   | 4,769,170 |   |   | 2,853,170 |   |

|   | The      amortized cost and estimated fair value of investment securities      available-for-sale and held-to-maturity at June 30, 2009, by contractual      maturity are shown below. Expected maturities will differ from contractual      maturities because borrowers have the right to call or prepay certain      obligations with or without call or prepayment  penalties. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        Available-for-Sale                        |   |   | AmortizedCost |   |   | EstimatedFair      Value |       |
|-------------------------------------------------------|--------|--------|---------------|--------|--------|--------------------------|------------|
| State,      county and municipal and corporate bonds: |   |   |          |   |   |                     |
| 1      to 2 years                                     |   | $      | 511,447       |   |   |                     | 500,430    |   |
| 2      to 5 years                                     |   |   | 4,605,876     |   |   |                     | 4,002,584  |   |
| 5      to 10 years                                    |   |   | 5,794,302     |   |   |                     | 5,854,626  |   |
| After      10 years                                   |   |   | 43,294,872    |   |   |                     | 41,476,354 |   |
| Mortgage-backed      securities                       |   |   | 41,904,672    |   |   |                     | 42,110,378 |   |
|                                                  |   |   |          |   |   |                     |       |   |
|                                                  |   | $      | 96,111,169    |   |   |                     | 93,944,372 |   |
|                                                  |   |   |          |   |   |                     |       |   |
|  Held-to-Maturity                                |   |   |          |   |   |                     |       |   |   |
|                                                  |   |   |          |   |   |                     |       |   |
| Trust      preferred securities:                      |   |   |          |   |   |                     |       |   |
| After      10 years                                   |   | $      | 3,820,503     |   |   |                     | 1,229,880  |   |

|   | The      following is a summary of the fair values of securities that have      unrealized losses as of June 30, 2009 and December 31,    2008: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|                              |   |                     | June      30, 2009       |                   |
|-----------------------------------|--------|--------------------------|--------------------------|------------------------|
|                              |   |                     | Less      Than 12 Months |                   | 12      Months or More |   |
| Available-for-Sale                |   |                     | FairValue                |                   | UnrealizedLosses |   | FairValue |   | UnrealizedLosses |   |
|                              |   |                     |                     |                   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities   |   | $                        | 20,817,446               |                   |   | 350,205 |   |   | — |   |   | — |   |
| State,      county and municipals |   |                     | 19,002,995               |                   |   | 348,275 |   |   | 17,480,979 |   |   | 1,444,627 |   |
| Corporate      bonds              |   |                     | —                  |                   |   | — |   |   | 3,315,943 |   |   | 787,203 |   |
|                              |   | $                        | 39,820,441               |                   |   | 698,480 |   |   | 20,796,922 |   |   | 2,231,830 |   |
|                              |   |                     |                     |                   |   |   |   |   |   |   |   |   |   |
|                              |   | June      30, 2009       |                     |
|                              |   | Less      Than 12 Months |                     | 12      Months or More |   |
| Held-to-Maturity                  |   |                     | FairValue                |                   | UnrealizedLosses |   | FairValue |   | UnrealizedLosses |   |
|                              |   |                     |                     |                   |   |   |   |   |   |   |   |   |   |
| Trust      preferred securities   |   | $                        | —                  |                   |   | — |   |   | 1,229,880 |   |   | 2,590,623 |   |

----

|   |                       |
|--------|----------------------------|
| (5)    | Securities,      continued |

|                              |   |                     | December      31, 2008   |                   |
|-----------------------------------|--------|--------------------------|--------------------------|------------------------|
|                              |   |                     | Less      Than 12 Months |                   | 12      Months or More |   |
| Available-for-Sale                |   |                     | FairValue                |                   | UnrealizedLosses |   | FairValue |   | UnrealizedLosses |   |
|                              |   |                     |                     |                   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities   |   | $                        | 2,218,159                |                   |   | 30,265 |   |   | — |   |   | — |   |
| State,      county and municipals |   |                     | 33,952,227               |                   |   | 1,951,073 |   |   | 3,834,658 |   |   | 453,540 |   |
| Corporate      bonds              |   |                     | 3,915,717                |                   |   | 427,607 |   |   | — |   |   | — |   |
|                              |   | $                        | 40,086,103               |                   |   | 2,408,945 |   |   | 3,834,658 |   |   | 453,540 |   |
|                              |   |                     |                     |                   |   |   |   |   |   |   |   |   |   |
|                              |   | December      31, 2008   |                     |
|                              |   | Less      Than 12 Months |                     | 12      Months or More |   |
| Held-to-Maturity                  |   |                     | FairValue                |                   | UnrealizedLosses |   | FairValue |   | UnrealizedLosses |   |
|                              |   |                     |                     |                   |   |   |   |   |   |   |   |   |   |
| Trust      preferred securities   |   | $                        | 2,853,170                |                   |   | 4,769,170 |   |   | — |   |   | — |   |

|   | At      June 30, 2009, all unrealized losses in the investment securities      portfolio related to debt securities. The unrealized losses on these debt      securities arose due to changing interest rates and are considered to be      temporary. From the June 30, 2009 tables above, 13 securities out of 83      securities issued by mortgage-backed securities contained unrealized      losses, 75 out of 109 securities issued by state and political      subdivisions, 3 out of 3 securities issued by corporations and 15 out of      15 trust preferred securities contained unrealized losses. The Company      held 3 non-agency mortgage-backed securities and 3 corporate bonds with an      amortized cost of $4,103,114 and a fair value of $3,315,911 in the      available-for-sale portfolio which were analyzed for other-than-temporary      impairment based on expected cash flows and other market observable      assumptions related to default rates, loss severities, financial condition      of the issuer, underlying collateral and other data.  The      Company determined that the securities were not other-than-temporarily      impaired.  The remainder of the unrealized losses are considered      temporary because of acceptable investment grades on each security and the      repayment sources of principal and interest are largely government      backed.  In addition, the Company has the ability and intent to      hold these securities until the anticipated recovery of the remaining      amortized cost basis.                                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | During      the quarter ended June 30, 2009, the Company determined that certain of      its trust preferred securities classified as held-to-maturity were      other-than-temporarily impaired.  This determination was based      on the continued deterioration of the financial condition of the financial      institutions that are participating in the trust preferred securities      pools in which the Company invested as well as the period of time that      these securities have been in an unrealized loss position.  The      Company used cash flow analysis with defaulted issuers removed from future      cash flows.  The issuers that have payments deferred were      applied a recoverability probability based on capital status, level of      non-performing assets, core profitability and other factors.  In      addition, a forward default rate was projected.  The cash flows      were discounted by historical accrual rates to determine the estimated      credit loss on the securities which resulted in a total impairment charge      recognized in the quarter ended June 30, 2009 of      $3,812,554.  The remainder of the loss between the amortized      cost and the fair value in the amount of $2,590,623 was recognized in      other comprehensive loss during the quarter ended June 30, 2009. The      Company has placed the trust preferred securities on non-accrual status      and will include them in non-performing assets until such time as the      actual cash flows are received.  The second quarter ended June      30, 2009 is the first period that other-than-temporary impairment has been      recognized by the Company. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The      projected cash flows used to analyze for other-than-temporary impairment      are based on a number of assumptions and expectations that can vary      significantly with changes in those estimates.   If      conditions in the banking industry and general business and economic      conditions deteriorate further, the fair value could decrease and the      other-than-temporary loss may increase in future periods.  The      Company has the ability and intent to hold the trust preferred securities      until the anticipated recovery of the remaining cost      basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Proceeds      from sales of securities available-for-sale for the six months ended June      30, 2009 were $27,683,449 with gross gains of $541,598 and gross losses of      $59,969.  Proceeds from sales of securities available-for-sale      for the six months ended June 30, 2008 were $7,328,485 with gross gains of      $105,669.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Investment      securities with a fair value of approximately $76,940,466, and $92,431,000      as of June 30, 2009 and December 31, 2008, respectively, were pledged to      secure public deposits, as required by law, for secured fed funds lines of      credit and for other purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (6)    | Non-performing      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Non-performing      assets consist of foreclosed property, non-accrual loans, loans 90 days      past due still accruing and non-accrual trust preferred securities. The      table below summarizes nonperformingassets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|   |                                             |   | June      30, 2009 |        |   | December      31, 2008 |   |
|--------|--------------------------------------------------|--------|--------------------|-------------|--------|------------------------|--------|
|   | Foreclosed      property                         |   | $                  | 41,986,672  |   |                   |   | 45,797,654 |   |
|   | Non-accrual      loans                           |   |               | 99,703,856  |   |                   |   | 71,599,772 |   |
|   | Loans      90 days past due still accruing       |   |               | 1,667,875   |   |                   |   | 4,597,667 |   |
|   | Trust      preferred securities held-to-maturity |   |               | 1,229,880   |   |                   |   | — |   |
|   | Total                                            |   | $                  | 144,588,283 |   |                   |   | 121,995,093 |   |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6)    | Non-performing      Assets, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Non-performing      assets consist primarily of 34 residential real estate construction and      development properties ranging in balance from $1 million to $8 million.      All properties are being actively marketed for sale and management is      continuously monitoring the properties for proper valuation. The trust      preferred securities consist of 12 investments in pool issued and one      single bank issued trust preferred security ranging in original balances      of $250,000 to $1,500,000.                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (7)    | Net      Deferred Tax Asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | In      accordance with SFAS No. 109, Accounting      for Income Taxes (“SFAS No. 109”), we evaluate our deferred income      taxes quarterly to determine if a valuation allowance is required or      should be adjusted. SFAS No. 109 requires that companies assess whether      valuation allowances should be established against their deferred tax      assets based on all available evidence, both positive and negative, using      a “more likely than not” standard. This assessment considers, among other      matters, the nature, frequency and severity of recent losses, forecasts of      future profitability, the duration of statutory carryforward periods, our      experience with tax attributes expiring unused and tax planning      alternatives. In making such judgments, significant weight is given to      evidence that can be objectively verified. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | A      valuation allowance of 100% has been established based on the “more likely      than not” threshold for the Company’s net deferred income tax asset. The      result was a charge to income tax provision in the amount of $19,001,751      in the second quarter of 2009. Our ability to realize our deferred tax      asset depends on our ability to generate sufficient taxable income within      the carryback or carryforward period provided for in the tax law for each      applicable tax jurisdiction. We have considered the following possible      sources of taxable income when assessing the realization of our deferred      tax assets:                                                                                                                                                                                                                             |

|   |   | ● | Future      reversals of existing taxable temporary differences;                                |
|--------|--------|---------|-------------------------------------------------------------------------------------------------|
|   |   | ● | Future      taxable income exclusive of reversing temporary differences and      carryforwards; |
|   |   | ● | Taxable      income in prior carryback years; and                                               |
|   |   | ● | Tax      planning strategies.                                                                   |

| (8)    | Junior      Subordinated Debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The      Company entered into junior subordinated debentures in connection with an      acquisition in 2007. The debentures qualify as Tier I capital under      risk-based capital guidelines subject to certain limitations. The      debentures were issued June 15, 2007 in the amount of $10,825,000 at a      floating rate of 90 day LIBOR plus 1.55% payable quarterly. The debentures      are redeemable on a mandatory basis upon maturity in June 2037, but are      callable by the Company in June 2012. The Company has deferred the      interest payments on the debentures as of June 15, 2009. Under the      provisions of the debentures, the Company has the right to defer interest      payments by up to 20 quarters without an event of default. The Company was      required to defer interest payments by its primary federal      regulator. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (9)    | Regulatory      Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Capital      Adequacy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Quantitative      measures established by regulation to ensure capital adequacy require the      Company and the Bank to maintain minimum amounts and ratios of total and      Tier I capital to risk-weighted assets, and Tier I capital to average      assets. The amounts and ratios as defined in regulation are presented      hereafter. The Company’s and Bank’s actual capital ratios and status as of      June 30, 2009 are asfollows:                                                                                                                                                                                                                                                                                                                                                                                                              |

|   |                                          |   | Tier      ICapital      Ratio |       |   | TotalCapital      Ratio |   |   | LeverageRatio |   |   | Status |   |
|--------|-----------------------------------------------|--------|-------------------------------|------------|--------|-------------------------|--------|--------|---------------|--------|--------|--------|--------|
|   | Minimum      Ratio for Adequately Capitalized |   |                          | 4.00       | %      |                    |   | 8.00   | %             |   |   | 4.00   | %      |   |   |   |
|   | Minimum      Ratio for Well Capitalized       |   |                          | 6.00       | %      |                    |   | 10.00  | %             |   |   | 5.00   | %      |   |   |   |
|   |                                          |   |                          |       |   |                    |   |   |          |   |   |   |   |   |   |   |
|   | Company                                       |   |                          | 3.00  | %      |                    |   | 4.28   | %             |   |   | 2.37   | %      |   | Significantly      Undercapitalized |   |
|   | Bank                                          |   |                          | 2.99       | %      |                    |   | 4.26   | %             |   |   | 2.35   | %      |   | Significantly      Undercapitalized |   |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    |                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9)    | Regulatory      Matters, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The      Bank received a prompt corrective action letter from its primary      regulator, the OCC. Due to the significantly undercapitalized status,      the Bank is restricted in its ability to, among other things, make      distributions, undertake expansion activities and grow assets. The Bank      also must submit to its regulator an acceptable Capital Restoration Plan      within a stated deadline. Undercapitalized banks are prohibited from      accepting, renewing or rolling over brokered deposits and are restricted      with respect to the effective yield they may offer on insured      deposits.                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Withdrawal      of TARP Application                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | On      October 28, 2008, the Company filed an application to participate in the      Capital Purchase Program administered by the U. S. Department of the      Treasury under the Troubled Asset Relief Program. Because of the      regulatory actions of the Bank’s primary regulator that have taken place      or may take place, as well as the changes in the Capital Purchase Program,      the Company withdrew its application to participate in the Capital      Purchase Program on August 12, 2009.                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Written      Agreement with the Federal Reserve Bank of      Atlanta                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | On      August 10, 2009, the Company entered into a Written Agreement with the      Federal Reserve Bank of Atlanta (the “Federal Reserve”). The Written      Agreement contains several provisions intended to increase the financial      soundness of the Company so that the Company can serve as a source of      financial strength to the Bank.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Under      the terms of the Written Agreement, the Company has agreed to the      following provisions (among others detailed in the Written      Agreement):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | ● | Refrain      from paying dividends or receiving dividends from the Bank without the      prior written approval of the Federal Reserve.                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | ● | Refrain      from making payments of interest or principal on subordinated debt or      trust preferred securities without the prior written approval of the      Federal Reserve. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | ● | Refrain      from incurring, increasing or guaranteeing any debt without the prior      written approval of the Federal Reserve.                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | ● | Refrain      from redeeming any shares of its stock without the prior written approval      of the Federal Reserve.                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | ● | Submit      a written plan to maintain sufficient capital at the Company, on a      consolidated basis, and at the Bank.                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | ● | Furnish      quarterly progress reports.                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    |                                                                                                                                                                               |
| (10)   | Commitments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Derivative      Instruments and Hedging Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The      Company entered into an interest rate swap agreement in the total notional      amount of $10,500,000 on December 4, 2007. The objective of the swap was      to lock in a fixed rate as opposed to the contractual variable interest      rate on the junior subordinated debentures described above. The Company      received a variable rate of the 90 day LIBOR rate plus 1.55% and paid a      fixed rate of 5.77%. In order to preserve cash, the Company elected to      settle the swap June 17, 2009 for $691,000 and recorded it as a loss in      the period in which it occurred in accordance with SFAS No. 133, Accounting      for Derivative Instruments and Hedging Activities. The Company had      designated the swap contract as a cash flow hedge and, accordingly,      recorded the fair value of the derivative on its balance sheet prior to      the settlement.  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | Lines      of Credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | The      Bank had a line of credit with the Federal Home Loan Bank of Atlanta      (“FHLB”) in the amount of 20 percent of assets which was subject to      available qualifying collateral at June 30, 2009. The FHLB advances are      secured by the Bank’s stock in the FHLB, its qualifying 1-4 family first      mortgage loans and qualified commercial loans. In addition, the FHLB      accepts federal funds sold to the FHLB and certain investment securities      as collateral. Advances on the FHLB line of credit are subject to      available collateral and review of the Bank’s financial condition by the      FHLB. At June 30, 2009 and December 31, 2008, the Bank had advances      outstanding from the FHLB amounting to $52,000,000. The Bank pledged      sufficient collateral at June 30, 2009 and December 31, 2008 for these      borrowings. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | In      August 2009, the Bank received a notice from the FHLB that it had frozen      our borrowing availability to the amount outstanding. Advances that mature      may be renewed; however, no new advances may be  obtained.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11)   | Stockholders’      Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | On      June 16, 2009, the shareholders voted in favor of amending the Company’s      Amended and Restated Articles of Incorporation, to increase the number of      authorized shares of the Company’s common stock from 20,000,000 shares      having no par value to 50,000,000 shares having no par value and to      increase the number of authorized shares of the Company’s preferred stock      from 10,000,000 shares having no par value to 20,000,000 shares having no      par value.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (12)   | Fair      Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Effective      January 1, 2008, the Company adopted FASB Statement No. 157, Fair      Value Measurements (“SFAS No. 157”), which provides a framework for      measuring fair value under generally accepted accounting principles. SFAS      No. 157 applies to all financial instruments that are being measured and      reported on a fair value basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The      Company utilizes fair value measurements to record fair value adjustments      to certain assets and liabilities and to determine fair value disclosures.      Securities available-for-sale, derivatives and certain deposits are      recorded at fair value on a recurring basis. Additionally, from time to      time, the Company may be required to record at fair value other assets on      a nonrecurring basis, such as impaired loans, foreclosed property and      held-to-maturity securities. These nonrecurring fair value adjustments      typically involve application of lower of cost or market accounting or      write-downs of individual assets.                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Fair      Value Hierarchy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Under      SFAS No. 157, the Company groups assets and liabilities at fair value in      three levels, based on the markets in which the assets and liabilities are      traded and the reliability of the assumptions used to determine fair      value. These levels are:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Level      1 – | Valuation      is based upon quoted prices for identical instruments traded in active      markets.                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Level      2 – | Valuation      is based upon quoted prices for similar instruments in active markets,      quoted prices for identical or similar instruments in markets that are not      active, and model-based valuation techniques for which all significant      assumptions are observable in the market.                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Level      3 – | Valuation      is generated from model-based techniques that use at least one significant      assumption not observable in the market. These unobservable assumptions      reflect estimates of assumptions that market participants would use in      pricing the asset or liability. Valuation techniques include use of option      pricing models, discounted cash flow models and similar      techniques. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Following      is a description of valuation methodologies used for assets and      liabilities recorded at fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Securities      Available-for-Sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Securities      available-for-sale are recorded at fair value on a recurring basis. Fair      value measurement is based upon quoted prices, if available. If quoted      prices are not available, fair values are measured using independent      pricing models or other model-based valuation techniques such as the      present value of future cash flows, adjusted for the security’s credit      rating, prepayment assumptions and other factors such as credit loss      assumptions. Level 1 securities include those traded on active exchanges      such as U.S. Treasury securities that are traded by dealers or brokers in      active over-the-counter markets. Level 2 securities include      mortgage-backed securities issued by government sponsored enterprises,      corporate debt securities and municipal bonds. Securities classified as      Level 3 include asset-backed securities in less liquid      markets. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12)   | Fair      Value, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Securities      Held-to-Maturity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | The      Company does not record securities held-to-maturity at fair value on a      recurring basis. However, on a quarterly basis, a security is considered      impaired if the loss is considered other than temporary under SFAS 115-2      Recognition      and Presentation of Other than Temporary Impairments, (“SFAS No.      115-2”) dated April 9, 2009. Fair value measurement is based upon      model-based techniques that use at least one significant assumption not      observable in the market. These unobservable assumptions reflect estimates      and assumptions that market participants would use in pricing the      security. Valuation techniques include the use of a discounted cash flow      model based on reasonable assumptions to determine other- than-temporary      impairment and fair value of the security. The Company records the      impaired securities as nonrecurring Level 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | The      Company does not record loans at fair value on a recurring basis. However,      from time to time, a loan is considered impaired and an allowance for loan      losses is established. Loans for which it is probable that payment of      interest and principal will not be made in accordance with the contractual      terms of the loan agreement are considered impaired. Once a loan is      identified as individually impaired, management measures impairment in      accordance with SFAS No. 114, Accounting      by Creditors for Impairment of a Loan, (“SFAS No. 114”). The fair      value of impaired loans is estimated using one of several methods,      including collateral value, market value of similar debt, enterprise      value, liquidation value and discounted cash flows. Those impaired loans      not requiring an allowance represent loans for which the fair value of the      expected repayments or collateral exceed the recorded investments in such      loans. At June 30, 2009, substantially all of the impaired loans were      evaluated based on the fair value of the collateral. In accordance with      SFAS No. 157, impaired loans where an allowance is established based on      the fair value of collateral require classification in the fair value      hierarchy. When the fair value of the collateral is based on an observable      market price or a current appraised value, the Company records the      impaired loan as nonrecurring Level 2. When an appraised value is not      available or management determines the fair value of the collateral is      further impaired below the appraised value and there is no observable      market price, the Company records the impaired loan as nonrecurring Level      3. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Foreclosed      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Foreclosed      assets are adjusted to fair value upon transfer of the loans to foreclosed      assets. Subsequently, foreclosed assets are carried at the lower of      carrying value or fair value less selling cost. Fair value is based upon      independent market prices, appraised values of the collateral or      management’s estimation of the value of the collateral. When the fair      value of the collateral is based on an observable market price or a      current appraised value, the Company records the foreclosed asset as      nonrecurring Level 2. When an appraised value is not available or      management determines the fair value of the collateral is further impaired      below the appraised value and there is no observable market prices, the      Company records the foreclosed asset as nonrecurring Level    3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Intangible      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Identified      intangible assets are subject to impairment testing. A projected cash flow      valuation method is used in the completion of impairment testing. This      valuation method requires a significant degree of management judgment. In      the event the projected undiscounted net operating cash flows are less      than the carrying value, the asset is recorded at fair value as determined      by the valuation model. As such, the Company classifies intangible assets      subjected to nonrecurring fair value adjustments as Level    3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12)   | Fair      Value, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Derivative      Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The      Company uses interest rate swaps to manage interest rate risk. The      valuation of these instruments is determined using widely accepted      valuation techniques including discounted cash flow analysis on the      expected cash flows of each derivative. This analysis reflects the      contractual terms of the derivatives, including the period to maturity,      and uses observable market-based inputs, including interest rate curves      and implied volatilities. The fair values of interest rate swaps are      determined using the market standard methodology of netting the discounted      future fixed cash receipts and the discounted expected variable cash      payments. The variable cash payments are based on an expectation of future      interest rates (forward curves derived from observable market interest      rate curves). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | To      comply with the provisions of SFAS No. 157, the Company incorporates      credit valuation adjustments to appropriately reflect both its own      nonperformance risk and the respective counterparty’s nonperformance risk      in the fair value measurements. In adjusting the fair value of its      derivative contracts for the effect of nonperformance risk, the Company      has considered the impact of netting any applicable credit enhancements      such as collateral postings, thresholds, mutual puts and      guarantees.                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Although      the Company has determined that the majority of the inputs used to value      its derivatives fall within Level 2 of the fair value hierarchy, the      credit valuation adjustments associated with its derivatives utilize Level      3 inputs, such as estimates of current credit spreads to evaluate the      likelihood of default by itself or the counterparties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Assets      and Liabilities Recorded at Fair Value on a Recurring      Basis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The      table below presents the recorded amount of the Company’s assets and      liabilities measured at fair value on a recurring basis as of June 30,      2009 and December 31, 2008 aggregated by the level in the fair value      hierarchy within which those measurementsfall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|   |                                                        |   | Level      1 |    | Level      2 |   | Level      3 |   | Balance      atJune      30, 2009     |    |
|--------|-------------------------------------------------------------|--------|--------------|---------|--------------|--------|--------------|--------|---------------------------------------|---------|
|   | Securities      available-for-sale                          |   | $            | — |         |   | 93,944,372   |   |                                  | — |   |   | 93,944,372 |   |
|   |                                                        |   |         |    |         |   |         |   |                                  |    |   |   |   |   |
|   |                                                        |   | Level      1 |    | Level      2 |   | Level      3 |   | Balance      atDecember      31, 2008 |    |
|   | Securities      available-for-sale                          |   | $            | — |         |   | 94,369,622   |   |                                  | — |   |   | 94,369,662 |   |
|   | Derivative      financial instruments–cash flow hedge |   | $            | — |         |   | (843,869     | )      |                                  | — |   |   | (843,869 | ) |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12)   | Fair      Value, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | Assets      Recorded at Fair Value on a Nonrecurring    Basis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      Company may be required, from time to time, to measure certain assets at      fair value on a nonrecurring basis in accordance with U.S. Generally      Accepted Accounting Principles (“GAAP”). These include assets that are      measured at the lower of cost or market that were recognized at fair value      below cost at the end of the period. The table below presents the      Company’s assets measured at fair value on a nonrecurring basis as of June      30, 2009 and December 31, 2008 by the level in the fair value hierarchy      within which those measurementsfall: |

|   |                             |   | Level      1 |    | Level      2 |       | Level      3 |      | Balance      atJune      30, 2009     |       |
|--------|----------------------------------|--------|--------------|---------|--------------|------------|--------------|-----------|---------------------------------------|------------|
|   | Loans                            |   | $            | — |         | 92,455,565 |         | —   |                                  | 92,455,565 |   |
|   | Securities      held-to-maturity |   | $            | — |         | —    |         | 1,229,880 |                                  | 1,229,880  |   |
|   | Foreclosed      Property         |   | $            | — |         | 41,986,672 |         | —   |                                  | 41,986,672 |   |
|   |                             |   |         |    |         |       |         |      |                                  |       |   |
|   |                             |   | Level      1 |    | Level      2 |       | Level      3 |      | Balance      atDecember      31, 2008 |       |
|   | Loans                            |   | $            | — |         | 68,161,156 |         | —   |                                  | 68,161,156 |   |
|   | Foreclosed      Property         |   | $            | — |         | 45,797,654 |         | —   |                                  | 45,797,654 |   |

|   | Fair      Value of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The      Company is required to disclose fair value information about financial      instruments, whether or not recognized on the face of the balance sheet,      for which it is practicable to estimate that value. The assumptions used      in the estimation of the fair value of the Company’s financial instruments      are detailed below. Where quoted prices are not available, fair values are      based on estimates using discounted cash flows and other valuation      techniques. The use of discounted cash flows can be significantly affected      by the assumptions used, including the discount rate and estimates of      future cash flows. The following disclosures should not be considered a      surrogate of the liquidation value of the Company or its subsidiary, but      rather a good-faith estimate of the increase or decrease in value of      financial instruments held by the Company since purchase, origination, or      issuance. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Cash      and Cash Equivalents |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | For      cash, due from banks, interest-bearing funds in other banks and federal      funds sold, the carrying amount is a reasonable estimate of fair      value. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Securities |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The      fair values for investment securities are based on quoted market prices or      by calculating the present value of expected cash flows using market      observable inputs, analytical models and certain actual and estimated      market information. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Loans |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The      fair value of fixed rate loans is estimated by discounting the future cash      flows using the current rates at which similar loans would be made to      borrowers with similar credit ratings. For variable rate loans, the      carrying amount is a reasonable estimate of fair value. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Cash      Surrender Value of Life Insurance |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The      fair value of cash surrender value of life insurance is based on the net      surrender value of the insurance contract. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Deposits |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The      fair value of demand deposits, savings accounts, NOW and certain money      market deposits is the amount payable on demand at the reporting date. The      fair value of fixed maturity certificates of deposit is estimated by      discounting the future cash flows using the rates currently offered for      deposits of similar remaining maturities. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Federal      Home Loan Bank Advances |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The      fair value of advances outstanding is based on the quoted value provided      by the FHLB. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12)   | Fair      Value, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Junior      Subordinated Debentures                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | For      the floating rate junior subordinated debentures, the carrying amount is a      reasonable estimate of fair value.                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Derivative      Instruments                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | For      derivative instruments, fair value is estimated as the amount that the      Company would receive or pay to terminate the contracts at the reporting      date, taking into account the current unrealized gains or losses on open      contracts.                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Commitments      to Extend Credit, Standby Letters of  Credit                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Off      balance sheet instruments (commitments to extend credit and standby      letters of credit) are generally short-term and at variable interest      rates. Therefore, both the carrying value and estimated fair value      associated with these instruments are immaterial. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                  |
|   | Limitations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | Fair      value estimates are made at a specific point in time, based on relevant      market information and information about the financial instrument. These      estimates do not reflect any premium or discount that could result from      offering for sale at one time the Company’s entire holdings of a      particular financial instrument. Because no market exists for a      significant portion of the Company’s financial instruments, fair value      estimates are based on many judgments. These estimates are subjective in      nature and involve uncertainties and matters of significant judgment and      therefore cannot be determined with precision. Changes in assumptions      could significantly affect the estimates.                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                  |
|   | Fair      value estimates are based on existing on and off balance sheet financial      instruments without attempting to estimate the value of anticipated future      business and the value of assets and liabilities that are not considered      financial instruments. Significant assets and liabilities that are not      considered financial instruments include deferred income taxes and      premises and equipment. In addition, the tax ramifications related to the      realization of the unrealized gains and losses can have a significant      effect on fair value estimates and have not been considered in the      estimates. The carrying amount and estimated fair values of the Company’s      financial instruments at June 30, 2009 and December 31, 2008 are as      follows: |

|                                        |   | June      30, 2009 |        |   | December      31, 2008   |   |
|---------------------------------------------|--------|--------------------|-------------|--------|--------------------------|--------|
|                                        |   | CarryingAmount     |        |   | EstimatedFair      Value |   |   | CarryingAmount |   |   | EstimatedFair      Value |   |
|                                        |   |               |        |   |                     |   |   |   |   |   |   |   |
| Assets:                                     |   |               |        |   |                     |   |   |   |   |   |   |   |
| Cash      and cash equivalents              |   | $                  | 85,326,480  |   |                     |   | 85,326,480 |   |   |   | 75,350,985 |   |   |   | 75,350,985 |   |
| Securities      available-for-sale          |   | $                  | 93,944,372  |   |                     |   | 93,944,372 |   |   |   | 94,369,622 |   |   |   | 94,369,622 |   |
| Securities      held-to-maturity            |   | $                  | 1,229,880   |   |                     |   | 1,229,880 |   |   |   | 7,622,340 |   |   |   | 2,853,170 |   |
| Loans,      net                             |   | $                  | 583,374,103 |   |                     |   | 592,312,858 |   |   |   | 618,922,150 |   |   |   | 626,375,582 |   |
| Cash      surrender value of life insurance |   | $                  | 3,874,229   |   |                     |   | 3,874,229 |   |   |   | 3,803,010 |   |   |   | 3,803,010 |   |
|                                        |   |               |        |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                |   |               |        |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                    |   | $                  | 765,150,411 |   |                     |   | 775,041,257 |   |   |   | 761,693,075 |   |   |   | 770,356,279 |   |
| Federal      Home Loan Bank advances        |   | $                  | 52,000,000  |   |                     |   | 54,640,186 |   |   |   | 52,000,000 |   |   |   | 55,640,862 |   |
| Junior      subordinated debentures         |   | $                  | 10,825,000  |   |                     |   | 10,825,000 |   |   |   | 10,825,000 |   |   |   | 10,825,000 |   |
| Derivative      instruments-cash flow hedge |   | $                  | —     |   |                     |   | — |   |   |   | 843,869 |   |   |   | 843,869 |   |

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|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (13)   | Recent      Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|   | In      June 2009, the FASB issued SFAS No. 167, Amendments      to FASB Interpretation No. 46(R). This statement amends certain      requirements of FASB Interpretation No. 46 (revised December 2003), Consolidation      of Variable Interest Entities, to improve financial reporting by      enterprises involved with variable interest entities and to provide more      relevant and reliable information to users of financial statements. This      Statement shall be effective as of the beginning of each reporting      entity’s first annual reporting period that begins after November 15,      2009, for interim periods within that first annual reporting period, and      for interim and annual reporting periods thereafter with earlier      application prohibited. Management does not anticipate it will have a      material effect on the Company’s consolidated financial condition or      results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      June 2009, the FASB issued SFAS No. 166, Accounting      for Transfers of Financial Assets, an amendment of FASB Statement No. 140.      The objective of this Statement is to improve the relevance,      representational faithfulness, and comparability of the information that a      reporting entity provides. This Statement must be applied as of the      beginning of each reporting entity’s first annual reporting period that      begins after November 15, 2009, for interim periods within that first      annual reporting period and for interim and annual reporting periods      thereafter with earlier application prohibited. This Statement must be      applied to transfers occurring on or after the effective date. Management      does not anticipate it will have a material effect on the Company’s      consolidated financial condition or results of  operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      May 2009, the FASB issued SFAS No. 165, Subsequent      Events. SFAS No. 165 establishes principles and requirements for      subsequent events, setting forth the period after the balance sheet date      during which management of a reporting entity shall evaluate events or      transactions that may occur for potential recognition or disclosure in the      financial statements, the circumstances under which an entity shall      recognize events or transactions occurring after the balance sheet date in      its financial statements, and the disclosures that an entity shall make      about events or transactions that occurred after the balance sheet date.      SFAS No. 165 is effective for interim or annual financial periods ending      after June 15, 2009, and shall be applied prospectively. The adoption of      SFAS No. 165 did not have a material effect on the Company’s consolidated      financial condition or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      April 2009, the FASB issued FSP FAS 141 (R)-1, Accounting      for Assets Acquired and Liabilities Assumed in a Business Combination That      Arise from Contingencies. This FASB Staff Position amends and      clarifies SFAS No. 141 (R), Business      Combinations, to address application issues on the initial      recognition and measurement, subsequent measurement and accounting, and      disclosure of assets and liabilities arising from contingencies in a      business combination. This Statement is effective for financial statements      issued for fiscal years beginning after December 15, 2008. The Company      cannot determine what impact this will have until the transactions      occur.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      April 2009, the FASB issued FSP FAS 157-4, Determining      Fair Value When the Volume and Level of Activity for the Asset or      Liability Have Significantly Decreased and Identifying Transactions That      Are Not Orderly. This FASB Staff Position provides additional      guidance for estimating fair value in accordance with SFAS No. 157, Fair      Value Measurements, when the volume and level of activity for the      asset or liability have significantly decreased. It also includes guidance      on identifying circumstances that indicate a transaction is not orderly.      It emphasizes that even if there has been a significant decrease in the      volume and level of activity for the asset or liability and regardless of      the valuation technique used, the objective of a fair value measurement      remains the same. Fair value is the price that would be received to sell      an asset or paid to transfer a liability in an orderly transaction between      market participants at the measurement date under current market      conditions. This FASB Staff Position is effective for interim and annual      reporting periods ending after June 15, 2009 with early adoption being      permitted for periods ending after March 15, 2009 and shall be applied      prospectively. The adoption of FSP FAS 154-7 did not have a material      effect on the Company’s financial position or results of      operations. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      April 2009, the FASB issued FSP FAS 115-2 and FAS 124-2, Recognition      and Presentation of Other-Than-Temporary Impairments. This FASB      Staff Position amends the other-than-temporary impairment guidance in U.S.      GAAP for debt securities to make the guidance more operational and to      improve the presentation and disclosure of other-than-temporary      impairments on debt and equity securities in the financial statements and      does not amend existing recognition and measurement guidance related to      other-than-temporary impairments of equity securities. This FASB Staff      Position is effective for interim and annual reporting periods ending      after June 15, 2009 with early adoption being permitted for periods ending      after March 15, 2009. The Company adopted FSP 115-2 and FAS 124-2 during      2009 and has recognized an other-than-temporary impairment on its      investment securitiesheld-to-maturity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (13)   | Recent      Accounting Pronouncements, continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | In      April 2009, the FASB issued FSP FAS 107-1 and APB 28-1, Interim      Disclosures about Fair Value of Financial Instruments. This FASB      Staff Position amends SFAS No. 107, Disclosures      about Fair Value of Financial Instruments, to require disclosures      about fair value of financial instruments for interim reporting periods of      publicly-traded companies as well as in annual financial statements. It      also amends APB No. 28, Interim      Financial Reporting, to require those disclosures in summarized      financial information at interim reporting periods. This FASB Staff      Position is effective for interim and annual reporting periods ending      after June 15, 2009 with early adoption being permitted for periods ending      after March 15, 2009. The adoption of FSP FAS 107-1 and APB 28-1 did not      have a material effect on its financial position or results of      operations.                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | In      January 2009, the FASB issued FSP No. 99-20-1, Amendments      to the Impairment Guidance of EITF Issue No. 99-20. This FASB Staff      Position amends the impairment guidance in EITF Issue No. 99-20, Recognition      of Interest Income and Impairment on Purchased Beneficial Interests and      Beneficial Interests That Continue to Be Held by a Transferor in      Securitized Financial Assets, to achieve more consistent      determination of whether an other-than-temporary impairment has occurred.      The FASB Staff Postion also retains and emphasizes the objective of an      other-than-temporary impairment assessment and the related disclosure      requirements in FASB Statement No. 115, Accounting      for Certain Investments in Debt and Equity Securities, and other      related guidance. This FASB Staff Position is effective for interim and      annual reporting periods ending after December 15, 2008, and shall be      applied prospectively. Retrospective application to a prior interim or      annual reporting period is not permitted. The adoption of FSP No. 99-20-1      did not have a material effect on the Company’s consolidated financial      condition or results ofoperations. |

----

| Item      2. | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|--------------|-------------------------------------------------------------------------------------------------------|

|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ●       | the      effect of compliance, or failure to comply within stated deadlines, of the      provisions of our formal agreement with our primary regulators, including      failure to promptly remedy our current significantly undercapitalized      status;                                                                                                        |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●  | the      success of our efforts to maintain adequate liquidity to meet the deposit      and loan demands of our customers given diminishing sources of      funds;                                                                                                                                                                                                |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of the current and anticipated deterioration in the housing market      and the residential construction industry which may lead to increased loss      severities and further worsening of delinquencies and non-performing      assets in our loan portfolios;                                                                                  |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of the significant number of construction acquisition and      development loans we have in our loan portfolios, which may pose more      credit risk than other types of mortgage loans typically made by banking      institutions due to the disruptions in credit and housing markets and be      subject to decreasing value at reappraisal. |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of changes in the quality or composition of our loans or investment      portfolios, including further impairment in our trust preferred      investments;                                                                                                                                                                                        |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of changes in market factors that may affect the value of financial      instruments which are “marked-to-market” periodically;                                                                                                                                                                                                       |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of negative public opinion, or reputation risk, on earnings or      capital raising efforts;                                                                                                                                                                                                                                                      |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of terrorist activities that result in loss of consumer confidence      and economic disruptions;                                                                                                                                                                                                                                                 |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of the continuing deterioration of the local economies in which we      conduct operations which results in, among other things, a deterioration      in credit quality or a reduced demand for credit, including a resultant      adverse effect on our loan portfolio and allowance for loan and lease      losses;                             |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      possibility that our allowance for loan and lease losses proves to be      inadequate or that federal and state regulators who periodically review      our loan portfolio require us to increase the provision for loan losses or      recognize loan charge-offs;                                                                                      |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of changes in laws and regulations, including federal and state      banking laws and regulations, with which we must comply, and the      associated costs of compliance with such laws and regulations either      currently or in the future as applicable;                                                                                    |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of changes in accounting policies, standards, guidelines or      principles, as may be adopted by the regulatory agencies as well as by the      Financial Accounting Standards Board;                                                                                                                                                            |
|   |          |                                                                                                                                                                                                                                                                                                                                                              |
|   | ●       | the      effect of changes in trade, monetary and fiscal policies, including      governmental intervention in the U.S. financial system, as well as changes      affecting financial institutions’ ability to lend and otherwise do      business withconsumers;                                                                                           |

----

|   |    |                                                                                                                                                                                                                                                                                                                                      |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | the      effect on our competitive position within our market area of the      increasing consolidation within the banking and financial services      industries, including the increased competition from larger regional and      out-of-state banking organizations as well as non-bank providers of      various financial services; |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect of changes in interest rates;                                                                                                                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect of changes in the business cycle and downturns in local, regional      or national economies;                                                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect of troubled institutions in our market area continuing to dispose      of problem assets which, given the already excess inventory of residential      homes and lots will continue to negatively impact home values and increase      the time it takes us or our borrowers to sell existing      inventory;             |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect of public perception that banking institutions are risky      institutions for purposes of regulatory compliance or safeguarding      deposits which may cause depositors nonetheless to move their funds to      larger institutions;                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      possibility that we could be held responsible for environmental      liabilities of properties acquired through foreclosure;                                                                                                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect of our inability to receive federal monies under the TARP on our      efforts to raise needed capital;                                                                                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect on operating income of increased operating expenses particularly      due to increases in FDIC insurance rates and special assessments and      expenses on non-performing loan and foreclosed property;    and                                                                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                      |
|   | ● | the      effect of our decision to withdraw our NASDAQ listing with respect to our      Series A Preferred Stock and our common stock on the trading price of such      stock .                                                                                                                                                           |

----

----

----

----

----

----

----

----

|                                                                                         |   |                                   |        |   |   |   |
|----------------------------------------------------------------------------------------------|--------|----------------------------------------|-------------|--------|--------|--------|
| Allowance      for Loan Loss                                                                 |   | For      the Six Months Ended June 30, |        |
|                                                                                         |   | 2009                                   |        |   | 2008   |   |
| Balance      at beginning of period                                                          |   | $                                      | 11,239,767  |   |   |   | 12,422,428 |   |
| Charge-offs:                                                                                 |   |                                   |        |   |   |   |   |   |
| Commercial,      financial and agricultural                                                  |   |                                   | 2,046,718   |   |   |   | 60,883 |   |
| Real      estate – construction                                                        |   |                                   | 12,005,877  |   |   |   | 3,706,671 |   |
| Real      estate – mortgage                                                            |   |                                   | 1,381,579   |   |   |   | 267,299 |   |
| Consumer      loans                                                                          |   |                                   | 555,039     |   |   |   | 161,260 |   |
| Total      charge-offs                                                                       |   |                                   | 15,989,213  |   |   |   | 4,196,113 |   |
| Recoveries:                                                                                  |   |                                   |        |   |   |   |   |   |
| Commercial,      financial and agricultural                                                  |   |                                   | 2,413       |   |   |   | 11,698 |   |
| Real      estate – construction                                                        |   |                                   | 38,806      |   |   |   | 199,641 |   |
| Real      estate – mortgage                                                            |   |                                   | 41,658      |   |   |   | 1,904 |   |
| Consumer      loans                                                                          |   |                                   | 39,785      |   |   |   | 77,763 |   |
| Total      recoveries                                                                        |   |                                   | 122,662     |   |   |   | 291,006 |   |
| Net      charge-offs                                                                         |   |                                   | (15,866,551 | )      |   |   | (3,905,107 | ) |
| Provision      for loan losses                                                               |   |                                   | 26,046,728  |   |   |   | 8,850,000 |   |
| Balance      at end of period                                                                |   | $                                      | 21,419,944  |   |   |   | 17,367,321 |   |
|                                                                                         |   |                                   |        |   |   |   |   |   |
| Ratio      of net charge-offs recoveries during the period to average loans      outstanding |   |                                   | 2.55        | %      |   |   | .59 | % |
|                                                                                         |   |                                   |        |   |   |   |   |   |
| Ratio      of allowance to total loans                                                       |   |                                   | 3.54        | %      |   |   | 2.67 | % |

----

----

----

|                                        |        |   |             |               |   |   |
|---------------------------------------------|-------------|--------|------------------|--------------------|--------|--------|
|                                        |  Loans |   |             | June      30, 2009 |   |   | December      31, 2008 |   |
| Commercial,      financial and agricultural |        | $      | 60,932,063       |               |   |   | 64,433,643 |   |
| Real      Estate – mortgage           |        |   | 360,782,264      |               |   |   | 349,612,461 |   |
| Real      Estate – construction       |        |   | 154,285,897      |               |   |   | 182,877,720 |   |
| Consumer                                    |        |   | 29,830,090       |               |   |   | 34,575,962 |   |
| Total                                       |        |   | 605,830,314      |               |   |   | 631,499,786 |   |
|                                        |        |   |             |               |   |   |   |   |
| Unearned      interest                      |        |   | (1,036,267       | )                  |   |   | (1,337,869 | ) |
| Allowance      for loan losses              |        |   | (21,419,944      | )                  |   |   | (11,239,767 | ) |
| Net      Loans                              |        | $      | 583      374,103 |               |   |   | 618,922,150 |   |

----

| Item      3. | Quantitative      and Qualitative Disclosures about MarketRisk |
|--------------|----------------------------------------------------------------|

----

| Item      4T. | Controls      and Procedures |
|---------------|------------------------------|

|         |                   |
|--------------|------------------------|
| Item      1. | Legal      Proceedings |

|         |                                                            |
|--------------|-----------------------------------------------------------------|
| Item      2. | Unregistered      Sales of Equity Securities and Use ofProceeds |

|   | (a)    | Not      applicable.                                                                                    |
|--------|--------|---------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                    |
|   | (b)    | Not      applicable.                                                                                    |
|   |   |                                                                                                    |
|   | (c)    | There      were no issuer purchases of equity securities during the period covered by      this Report. |

|         |                                 |
|--------------|--------------------------------------|
| Item      3. | Defaults      Upon Senior Securities |

----

| Item      4. | Submission      of Matters to a Vote of SecurityHolders |
|--------------|---------------------------------------------------------|

|         |                   |
|--------------|------------------------|
| Item      5. | Other      Information |

|         |     |
|--------------|----------|
| Item      6. | Exhibits |

|   |   |                                                                                                                                                                                                                                                                                                   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1    | Amended      and Restated Articles of Incorporation (Incorporated by reference to      Exhibit 3.1 to the Company’s Registration Statement on Form 10-SB filed      June 14, 2000 (the “Form 10-SB”))                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                   |
|   | 3.2    | Articles      of Amendment to Amended and Restated Articles of Incorporation      (Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K      filed June 19, 2008)                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                   |
|   | 3.3    | Second      Articles of Amendment to Amended and Restated Articles of Incorporation      (Regarding Designations, Preferences and Rights of Series A Convertible      Preferred Stock) (Incorporated by reference to Exhibit 3.1 to Current      Report on Form 8-K filed June 26, 2008)               |
|   |   |                                                                                                                                                                                                                                                                                                   |
|   | 3.4    | Third      Articles of Amendment to Amended and Restated Articles of Incorporation      (Regarding restatement of Designations, Preferences and Rights of Series A      Convertible Preferred Stock) (Incorporated by reference to Exhibit 3.1 to      Current Report on Form 8-K filed July 22, 2008) |
|   |   |                                                                                                                                                                                                                                                                                                   |
|   | 3.5    | Fourth      Articles of Amendment to Amended and Restated Articles of      Incorporation                                                                                                                                                                                                               |

----

|   | 3.6    | Amended      and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to the Form      10-SB)                                                                                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                |
|   | 4.1    | See      exhibits 3.1 through 3.6 for provisions of Company’s Articles of      Incorporation and Bylaws Defining the Rights of    Shareholders                                                                                |
|   |   |                                                                                                                                                                                                                                |
|   | 4.2    | Specimen      certificate representing shares of Common Stock (Incorporated by reference      to Exhibit 4.2 to the Form 10-SB)                                                                                                     |
|   |   |                                                                                                                                                                                                                                |
|   | 4.3    | Specimen      certificate representing shares of Series A Convertible Preferred Stock      (Incorporated by reference to Exhibit 4.3 to Registration Statement on      Form S-1 (Registration No. 333-151820) filed June 20,  2008) |
|   |   |                                                                                                                                                                                                                                |
|   | 4.4    | Amended      and Restated Trust Agreement dated July 2, 2007 (Incorporated by reference      to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed July 6,      2007 (the “July 2007 Form 8-K”)        |
|   |   |                                                                                                                                                                                                                                |
|   | 4.5    | Indenture,      dated July 2, 2007, by and between WGNB Corp. and Wilmington Trust Company      (Incorporated by reference to Exhibit 4.2 to the July 2007 Form      8-K)                                                           |
|   |   |                                                                                                                                                                                                                                |
|   | 4.6    | Guarantee      Agreement, dated July 2, 2007, by and between WGNB Corp. and Wilmington      Trust Company (Incorporated by reference to Exhibit 4.3 to the July 2007      Form 8-K)                                                 |
|   |   |                                                                                                                                                                                                                                |
|   | 4.7    | WGNB      Corp. Direct Stock Purchase and Dividend Reinvestment Plan (Incorporated      by reference to Form S-3 filed May 20, 2008 as amended November 6,      2008)                                                               |
|   |   |                                                                                                                                                                                                                                |
|   | 10.1   | Written      Agreement between WGNB Corp. and the Federal Reserve Bank of Atlanta dated      August 10, 2009                                                                                                                        |
|   |   |                                                                                                                                                                                                                                |
|   | 31.1   | Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                        |
|   |   |                                                                                                                                                                                                                                |
|   | 31.2   | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley      Act of 2002                                                                                                                        |
|   |   |                                                                                                                                                                                                                                |
|   | 32.1   | Certification      of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002                                                                                                                        |
|   |   |                                                                                                                                                                                                                                |
|   | 32.2   | Certification      of Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley      Act of 2002                                                                                                                        |

----

|                        |            |                                                                                                                            |
|-----------------------------|-----------------|---------------------------------------------------------------------------------------------------------------------------------|
| Dated:      August 14, 2009 |            |                                                                                                                            |
|                        |            |                                                                                                                            |
|                        | WGNB      CORP. |
|                        |            |                                                                                                                            |
|                        | By:             |                  /s/      H. B. Lipham III |
|                        |            | H.      B. Lipham, III                                                                                                          |
|                        |            | Chief      Executive Officer                                                                                                    |
|                        |            | Principal      Executive Officer                                                                                                |
|                        |            |                                                                                                                            |
|                        | By:             |                  /s/      Steven J. Haack  |
|                        |            | Steven      J. Haack                                                                                                            |
|                        |            | Secretary      and Treasurer                                                                                                    |
|                        |            | Principal      Financial Officer                                                                                                |

----

|             |   |                                                                                                                                                                                                                                                                                                   |
|------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit      No. |   | Description                                                                                                                                                                                                                                                                                            |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 3.1              |   | Amended      and Restated Articles of Incorporation (Incorporated by reference to      Exhibit 3.1 to the Company’s Registration Statement on Form 10-SB filed      June 14, 2000 (the “Form 10-SB”))                                                                                |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 3.2              |   | Articles      of Amendment to Amended and Restated Articles of Incorporation      (Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K      filed June 19, 2008)                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 3.3              |   | Second      Articles of Amendment to Amended and Restated Articles of Incorporation      (Regarding Designations, Preferences and Rights of Series A Convertible      Preferred Stock) (Incorporated by reference to Exhibit 3.1 to Current      Report on Form 8-K filed June 26, 2008)               |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 3.4              |   | Third      Articles of Amendment to Amended and Restated Articles of Incorporation      (Regarding restatement of Designations, Preferences and Rights of Series A      Convertible Preferred Stock) (Incorporated by reference to Exhibit 3.1 to      Current Report on Form 8-K filed July 22, 2008) |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 3.5              |   | Fourth      Articles of Amendment to Amended and Restated Articles of      Incorporation                                                                                                                                                                                                               |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 3.6              |   | Amended      and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to the Form      10-SB)                                                                                                                                                                                                     |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.1              |   | See      exhibits 3.1 through 3.6 for provisions of Company’s Articles of      Incorporation and Bylaws Defining the Rights of    Shareholders                                                                                                                                                   |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.2              |   | Specimen      certificate representing shares of Common Stock (Incorporated by reference      to Exhibit 4.2 to the Form 10-SB)                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.3              |   | Specimen      certificate representing shares of Series A Convertible Preferred Stock      (Incorporated by reference to Exhibit 4.3 to Registration Statement on      Form S-1 (Registration No. 333-151820) filed June 20,  2008)                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.4              |   | Amended      and Restated Trust Agreement dated July 2, 2007 (Incorporated by reference      to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed July 6,      2007 (the “July 2007 Form 8-K”)                                                                           |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.5              |   | Indenture,      dated July 2, 2007, by and between WGNB Corp. and Wilmington Trust Company      (Incorporated by reference to Exhibit 4.2 to the July 2007 Form      8-K)                                                                                                                              |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.6              |   | Guarantee      Agreement, dated July 2, 2007, by and between WGNB Corp. and Wilmington      Trust Company (Incorporated by reference to Exhibit 4.3 to the July 2007      Form 8-K)                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 4.7              |   | WGNB      Corp. Direct Stock Purchase and Dividend Reinvestment Plan (Incorporated      by reference to Form S-3 filed May 20, 2008 as amended November 6,      2008)                                                                                                                                  |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 10.1             |   | Written      Agreement between WGNB Corp. and the Federal Reserve Bank of Atlanta dated      August 10, 2009                                                                                                                                                                                           |
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| 31.1             |   | Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002                                                                                                                                                                                           |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 31.2             |   | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley      Act of 2002                                                                                                                                                                                           |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 32.1             |   | Certification      of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley      Act of 2002                                                                                                                                                                                           |
|             |   |                                                                                                                                                                                                                                                                                                   |
| 32.2             |   | Certification      of Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley      Act of 2002                                                                                                                                                                                           |